hsbc remortgage and additional borrowing

fraggle8

hi

we are currently trying to sort out a remortgage with hsbc. our outstanding balance is approx £165800 on a house valued at approx £190000+. i was under the opioion that we could borrow up to 90% of house value and was therefore going to remortgage at £170000 and use the extra for some home improvement. Someone from hsbc today told me however that can only add additional money if wanting more than £10000 does anyone know if this is true. I have now spoken to various people at hsbc and they all seem to say something different but surely as long as im below the 90% i should be able to add any amount?

payless

its up to the lender what they decide

fraggle8

payless wrote: »

its up to the lender what they decide

yes thats fair enough but i have spoken to at least 3 people at hsbc on the phone who havesaid that as long as its below 90% thats fine its my local branch that has said about £10000 min. just wondering if any one else has remortgaged with them lately and taken out additional money?

_Andy_

Is your mortgage already with them? If so the minimum further advance is £10k

fraggle8

_Andy_ wrote: »

Is your mortgage already with them? If so the minimum further advance is £10k

nope mortgage currently with halifax.

michaels

I did this when switching to HSBC in Feb (haven't actually drawn down the additional yet, you get 6 months from date of agreement) but I went for an extra 35K so can't say about the 10k min. However they did insist on it being treated as the main mortgage and a separate advance (something to do with benefits rules they said) in which case I can imagine that for admin reasons they would not want the extra advance portion to be too small?

TEDDYRUKSPIN

TOO MANY ASSUMPTIONS.

ANSWER:

Only if the whole package is capital repayment the loan to valuation must be under 90% LTV. Therefore, if your survey report comes back differently you are in trouble.

Now about the homeowner loan (further advance). With HSBC the minimum amount you can borrow is £10k flat. However!!!!..... With a remortgage you can actually borrow less than this. THIS... only applies to remortgages only! The reason being the £165k you are remortgaging is counted as above the £10k rule (i.e total).

SOLUTION:

As I always say!! Go into a branch to carry this out. I see now point in carrying things out over the phone. From experience, people over the phone can not provide advice or they should'nt actually be doing this. And... they are useless. Just look at this forum. The amount of complaints about dealing over the phone.

Another thing to help you with. To get around the £10k rule, simply put it on the tracker package. Drawdown the £10k and then simply transfer the amount you do not need back.

JUST FOR REFERENCE:

The reason why some lenders cap a minimum of £10k is that if you are borrowing less than this you should get a personal loan instead.